Colliers Report: Increasing construction prices hinder pipeline
April 27, 2021
2021 Q1 Industrial Greenville-Spartanburg Report
Key Takeaways:
- Overall absorption was 3.2 million square feet during the first quarter of 2021
- Market rents must increase for new construction to be feasible
- Demand is outpacing supply
Demand is high in the Greenville-Spartanburg industrial market because of its ideal location for logistics firms, strong manufacturing presence and supply constraints caused by increased construction costs and delivery delays. Projects under construction are absorbed quickly and at pro-forma, resulting in upward pressure on rental rates and sale prices.
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A Note Regarding COVID-19
As we publish this report, the U.S. and the world at large are facing a tremendous challenge, the scale of which is unprecedented in recent history. The spread of the novel coronavirus (COVID-19) is significantly altering day-to-day life, impacting society, the economy and, by extension, commercial real estate.
The extent, length and severity of this pandemic is unknown and continues to evolve at a rapid pace. The scale of the impact and its timing varies between locations. To better understand trends and emerging adjustments, please subscribe to Colliers’ COVID-19 Knowledge Leader page for resources and recent updates.
